Case Analysis for North American Warehouse Clubs Essay

The competitive environment has changed drastically since the BSG fictitious character was originally written. The United States (US) continues to decline in the market as opposed to several years ago, but due to certain qualities it continues to abide very competitive in the market. One factor which gives the US a competitive edge is innovation. US companies are loftyly sophisticated and innovative. For the purposes of this analysis, the stress get out be on innovation. Modern technology with information systems and applications with declare of the art information and communication technologies are leading factors in the victory of businesses directly. Many untrieder businesses use e-technologies as a tool that not merely improves efficiency, but gives them the competitive edge against those companies which are still running trading operations with outdated technology.Companies who have been around for decades are forced to implement new systems depending on their busine ss needs. Changing technology is an initiative that is generally high cost, taking time to implement. There are numerous options available today that if the implementation of a new system is not strategically intend it could ultimately place a business in a monetary deficit forcing businesses to reduce operations and sometimes shut down. It is important for businesses to sit in research and development (R&D) when deciding to develop new processes to control a competitive edge. Looking at the case, it is apparent that Costco was the leader in modern technology compared to the other 2 competitors.Costco began to grow its business with two websites in 2004 in the US and in Canada. Costcos e-commerce gross sales more than tripled over several years, reaching sales of over $1.2B in 2007. BJs began upgrading technology in 2007 which was fully implemented in 2009. Although net sales increased from $8,792M to $9,802M during the implementation years, net sales have seized to take an telltale(a) incline with the new system. Net sales only increased $152M from 2009 to 2010. The case did not report on any innovations related to technology for surface-to-air missiles Club.Some of the problems Sams Club faces compared to the other competitors plunder be directed at the location of warehouses, their competition with Wal-Mart and their low scale of measurement target market. One way to improve would be to focus on their target market by offering upscale merchandise which depart target upscale clientele. Sams Club could purchase BJs which already sells high quality brand merchandise. Merging with this competitor would constrain the market share even more. Focusing on members through this character reference of merchandising strategy will increase profitability. Another way to improve would be to reduce the amounts of international imports and focus on using American made products. Reducing import/export costs overall will increase revenue growth and financial perf ormance.ReferencesWorld Economic Forum. 2012. The world(a) Competitiveness Report 2012-2013. Geneva World Economic Forum. Available at www3.weforum.org//WEF_GlobalCompetitivenessReport_2012-13Wall Street Journal. Sams Club CEO Launches dismantle on Rivals, Updated October 31, 2012, 144 p.m. ET http//online.wsj.com/ oblige/SB10001424052970203335504578089131653808580.html By SHELLY BANJOversion of this article appeared October 31, 2012, on page B7 in the U.S. edition of The Wall Street Journal, with the newspaper headline Sams Club CEO Launches Charge on Rivals.http//www.cbsnews.com/8301-505123_162-43940823/sams-clubs-risky-move-into-sma